Aneta Janiak-Olejnik

Examples of Trade Facilitation Agreement

The Trade Facilitation Agreement (TFA) was adopted by the World Trade Organization (WTO) in 2013 and came into effect in 2017. The agreement aims to simplify and streamline customs procedures to make international trade more efficient and less costly. Here are some examples of how the TFA has been implemented in different countries.

1. Rwanda: One-Stop Border Posts

Rwanda has implemented one-stop border posts (OSBPs) at its borders with Uganda, Tanzania, and the Democratic Republic of Congo. OSBPs allow traders to complete customs and immigration procedures for both countries in one location, reducing delays and costs. Rwanda has also implemented an electronic single window system for managing trade documents, reducing duplication and simplifying the process.

2. Pakistan: Authorized Economic Operators

Pakistan has established a program for authorized economic operators (AEOs), which are companies that have met certain criteria for customs compliance and security. AEOs receive preferential treatment in customs procedures, such as reduced inspections and simplified clearance processes. This helps to speed up the movement of goods and reduce costs for both traders and customs officials.

3. Peru: Risk Management

Peru has implemented a risk management system for customs inspections, which allows officials to target high-risk shipments more efficiently. This reduces the need for inspections of low-risk shipments, speeding up the clearance process and reducing costs. Peru has also implemented a trade facilitation portal that provides information on customs procedures and requirements for importers and exporters.

4. Kenya: Single Window System

Kenya has implemented a single window system for managing trade documents, which allows traders to submit all required documents through a single portal. This simplifies the process and reduces duplication of effort for both traders and customs officials. Kenya has also established a program for authorized economic operators, similar to Pakistan.

5. Mexico: Electronic Payment System

Mexico has implemented an electronic payment system for customs fees and duties, allowing traders to pay online instead of in person at customs offices. This speeds up the process and reduces the need for traders to travel to customs offices, saving time and money. Mexico has also implemented a risk management system for customs inspections and a program for authorized economic operators.

In conclusion, the Trade Facilitation Agreement has led to significant improvements in customs procedures around the world, making international trade faster, cheaper, and more efficient. Countries that have implemented the agreement have seen benefits such as reduced delays, lower costs, and increased trade flows. By simplifying and streamlining customs procedures, the TFA has made it easier for businesses of all sizes to participate in international trade, supporting economic growth and development.